Qantas slashes domestic flights by five per cent as fuel crisis grips airline industry

In a market update today, the airline said it will pay $3.1 billion to $3.3 billion for jet fuel in the second half of the financial year after refinery costs shot up from $20 a barrel to $120 a barrel.

The jet fuel increase is expected to impact the airline’s operating profit between $500 million and $800 million.

Qantas Group says it is working closely with the government and aviation fuel suppliers, who remain confident of supplies for the remainder of April and well into May.

“We are closely monitoring the situation given the ongoing uncertainty in global fuel supply chains,” the update said.

Passengers on affected Qantas and Jetstar domestic flights will be contacted about new flights.

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